Environmental Impacts of Reusable Transport Items: A Case Study of Pallet Pooling in a Retailer Supply Chain

Riccardo Accorsi,Chiara Pini,Riccardo Manzini,Giulia Baruffaldi

doi:10.3390/su11113147

Abstract

Manufacturing, storage, and transportation processes are typically facilitated by pallets, containers, and other reusable transport items (RTIs) designed to guarantee many cycles along a lifespan of several years. As a consequence, both supply and reverse transportation of RTIs need to be managed to avoid stockout along the supply chain and the unsustainable production of new tools from virgin materials. This paper focuses on the business of pallet management by analyzing the transport operations of a pallet pooling network serving a large-scale nationwide retailer. The pooler is responsible for supplying, collecting, and refurbishing pallets. The combination of the pooler’s management strategies with different retailer network configurations results in different pooling scenarios, which are assessed and compared in this paper through a what-if analysis. The logistical and environmental impacts generated by the pallet distribution activities are quantified per each scenario through a tailored software incorporating Geographic Information System (GIS) and routing functionalities. Findings from this analysis suggest how to reduce vehicle distance traveled (vehicles-km) by 65% and pollutant emissions by 60% by combining network infrastructures and pooling management strategies—identifying an empirical best practice for managers of pallet businesses.

Highlights

Manufacturing, storage, and transportation processes are typically facilitated by pallets, containers, and other reusable transport items (RTIs), which permeate supply chain operations [1]
The case study was approached by drawing arcs between logistic nodes and by examining how these were affected by the choice of the pallet management strategy
With the aim to assess the environmental and logistical impacts associated with the pallet service closed-loop networks (CLNs), the analyzed scenarios were illustrated using the Geographic Information System (GIS)-driven tool

Summary

Introduction

Manufacturing, storage, and transportation processes are typically facilitated by pallets, containers, and other reusable transport items (RTIs), which permeate supply chain operations [1]. As a standardized platform for unit loads, pallets are widely diffused in manufacturing facilities, warehouses and distribution centers, and stores and are thereby considered to be company assets. As they aid manufacturing and logistical operations, the number of pallets in circulation grows as countrywide economic and trade indicators (e.g., GDP) increase [2]. The management of pallets entails several processes along their life cycle and throughout logistics networks, such as production, distribution, and refurbishing. The use of RTIs is far more complex than more traditional disposable package management due to the increase of reverse logistics [5]

Methods

Results

Conclusion